Commodity Prices in East Africa Stable as Most Countries Harvest Produce

By Vera Shawiza / November 27, 2017

Commodity

Staple commodity prices in the East African region, especially for maize, are expected to remain above last year and five-year average prices despite the current average harvest
This, in turn, is expected to hence the prospects and actual imports of maize from different countries in the region into Kenya so as to moderate the expected rise in staple grain commodity
In the month of November, regional cross-border trade in maize declined typically from the previous second quarter as fresh supplies started entering most markets across the region.

On Monday, different towns in the East African countries showcased different retail and wholesale market prices for a 90-kilogram bag of maize.

In Kenya, the prices are as follows: 3.500 shillings in Malindi, 3,400 shillings in Nairobi, 3,000 shillings in Mombasa, 3,200 shillings in Kisumu, 2,500 shillings in Nakuru and Eldoret respectively and 2,400 shillings in Kitale.

The table below gives maize prices for different towns in some of the East Africa countries:

Availability of sorghum in the region is still high because of high carryover stocks from the previous above average harvest in Uganda.

Sorghum prices in most of the reference East African markets declined or remained stable seasonably following increased supply from the recent harvest and or imminent start of the October to-January harvest.

In Kenya, the prices for a 90-kilogram bag of Sorghum are as follows: 7,200 shillings in Eldoret, 6,000 shillings in Malindi, 5,200 shillings in Nairobi, 4,800 shillings in Kisumu and 3,600 shillings in Mombasa and Nauru respectively.

Sorghum prices in Uganda and especially in Kampala, are the ones trending below the regional average which is attributed to a better harvest. The table below shows more for the same:

Ngozi, in Burundi has the highest retail market prices for a 90-kilogram bag of Wheat at 8,435 shillings with Mombasa, Kenya having the least market price of 2,700 shillings.
The whole sale prices were as follows in different towns of the East African countries: 7,447 shillings in Ngozi, Burundi, 6,208 shillings in Kimironko, Rwanda, 3,587 shillings in Mbeya, Tanzania.
Here is a summary of the same:

Local rice production in Tanzania is currently average, but the carryover stocks are low because of high consumption in the previous marketing year as maize prices increased exceptionally.

The prices are expected to trend seasonably but will likely be moderated by increased demand for maize flour has the price for this substitute commodity is trending lower than that of rice.

The total cross-border trade in dry beans (86,500 MT) was 31 percent above the four-average for the July-to-September third quarter because of good performance of the May-to-August rains at the beginning of the season which was enough for most of the short maturing dry bean crop, although the overall rainfall performance was poor for the long cycle grain crops especially in main producing Uganda, Rwanda, and Ethiopia.
Dry bean trade in the region has been enhanced by increased demand. Kenya has accounted for 64 percent of regional dry bean imports. Dry bean exports from Uganda and Ethiopia to other regional markets have been 24 and 27 percent above the third quarter average as a result of seasonal increased demand in the structural deficit countries of South Sudan and Kenya. The demand was heightened by poor rainfall performance in Kenya.
Dry bean prices have declined seasonably in the reference markets of Nairobi (Kenya), Kigali (Rwanda) and Dar es Salaam (Tanzania) because of increased domestic and regional supplies. In the source markets of Rwanda and Uganda, the prices are increasing gradually but typically in the third quarter attributed to increased domestic and regional demand.



About Vera Shawiza

Vera Shawiza is Soko Directory’s in-house journalist. Her zealous nature ensures that sufficient and relevant content is generated for the Soko Directory website and sourcing information from clients is easy as smooth sailing.

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